9 States That Will Tax Social Security Benefits in 2025
Recently, GOBankingRates reported on the 41 states in America that won’t tax Social Security benefits in 2025. Missouri and Kansas elected to stop taxing Social Security benefits in 2024, as did Kansas shortly thereafter, leaving only nine states in the union that will still tax benefits in 2025.
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Find out whether your current state (or dream retirement state) will be taxing your Social Security benefits.
Also see three truths about the future of Social Security.
Colorado
In 2025, Colorado will continue to tax the benefits of Social Security recipients. Of note, though, is the fact that recipients in Colorado who are between the ages of 55 and 64 and have an adjusted gross income of $75,000 or less (for individuals) or $95,000 or less (for couples filing jointly) can fully deduct the federally taxed benefits come tax time.
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Connecticut
Connecticut has a similar exemption policy to that of Colorado — for single tax filers (or married individuals filing separately) whose adjusted gross income (AGI) is below $75,000, benefits are not taxed. The same goes for married couples filing jointly with an AGI below $100,000.
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Minnesota
Minnesota also offers an exemption from the taxation of Social Security benefits. Married filers with an AGI under $105,380 or individuals with an AGI beneath $82,190 pay no taxes on Social Security.
Montana
All of a Social Security recipient’s benefits are tax deductible for single filers with an AGI less than $25,000 and joint filers with an AGI less than $32,000.
New Mexico
Taxes on Social Security benefits have been nixed in New Mexico for individual recipients with annual earnings less than $100,000, and married people making less than $150,000.
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Rhode Island
Rhode Island individuals who make less than $88,950 in AGI can skip state taxes on their benefits, as can married couples with AGIs less than $111,200.
Utah
If you’re a single-filing individual in Utah and make less than $30,000 yearly, your Social Security benefits are exempt from taxation. Similarly, married couples making less $50,000 are exempt as well.
Vermont
In Vermont, married couples with incomes below $65,000 are exempt from the taxation of Social Security benefits; so, too, are individuals who make less than $50,000 per year.
West Virginia
While West Virginia will eventually phase out its state income tax on Social Security benefits in three years thanks to a newly passed law, for the time being individuals who make less than $50,000 annually are exempt, as are joint filers who make less than $100,000. The phase-out starts with 2024 taxes, which will be reduced by 35%. In 2025, the reduction will be 65%; and then there will be no taxes on Social Security in 2026.
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This article originally appeared on GOBankingRates.com: 9 States That Will Tax Social Security Benefits in 2025